New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-01-08
AMERICA and FOREIGN CAPITAL.

1t is not an omen of evil that foreign buyers
and sellers largely influence American markets
for securities. Time was when America went,
hat in hand, to borrow money in London or
Berlin. Now London comes thrustng millions
Of gold into New Y ork's vaults in order to get
| a share in the marvellous prosperity which de-
feat Of English policies and sympathics has
brought to this country. If the Republic had
been rs weak and unstable as British statesmen
| thought il, when blockade runners were help
ing tho rebels, English capital would not be
paying fancy prices this year for American
stocks. Or if British advice had ovcrthrown
the American tariff ten years ago, or three
years ago. or last year, British capitalists would
not now I've investing millions in American en-
terprises. Since free trade is such blessing
why has not Old England good use for its own
capitali
Sometimes one is tempted to wonder why
foreign capital and foreign labor do not come
here far more than they do, to escape burdens
and to share blessings Looking across the
ocean. one sees the great nations of Europe
bending under taxes moro severe than Amcri
cans can well comprehend and obliged at the
same time to lose the services as producers of
millions of stalwart men, who are kept under
arms. A crazy monarch pushing impetuously
into Bulgaria, desperate dcmagogue kindl'ng
French passions. might at any time plunge Eu-
rope into war; the end of which no man could
foreSce. Distress of wOrkingmcn in either
of a dozen cities, discomfort of the people in
eli her Of many districts might light the fires
of revolution, and their spread there is no
Napoleon to limit. On this side n nation as
mighty as any, in war or peace, keeps only
the shallow of an army and hardly the dream
Of navy, and can scarcely lie reasoned into
making decent preparations for coast defence.
because the people are conscious that they
govern themselves, and know that they want
Power can afford to force quarrel upon them.
Would it be strange if capital, which seeks
security above all things. should for mat rca-
son alone come by the millions to this land.
where only peace, stable government and
security from cnange can he found 7
Or if one thinks of profits, where else are
men to look Nine years ago, when American
railroads were at their worst, "Ihe London
Economist" printed comparative statement
showing the average returns of capital in
vested for the previous ten years III foreign
and American railroads. In spite OF unprcce-
denied depression here, the comparison showed
an average Of about per cent for all American
securities included in the statement, against
much lower figures for investments elsewhere
But since that time foreign capital has helped
TO build over $4,000 miles Of railroad in tins
country and the opportunities for investment
of money in new mines, new mills, new cattle
and other undertakings, have been indefinitely
expanded and multiplied A host of foreigners
have taken at low prices the securities oil
new American works, and have seen them
double in value. Many unwisc and many
fraudulent undertakings have cut down the
average return, and the building OF parallel
roads has reduced the average cost OF trans
portation here to an extent deemed impossible
nine years ago and yet a comparison OF the
dividends and interest on similar representative
| securities would probably show higher aver
age return than The Economists" table dis
closed. Where else can such opportunities be
found for the investment Of almost unlimited
sums, with the certainty that the natural
growth of the country will create new de-
mand for the movement Of about 4OOOOOoO
tons moro freight every year,
II is 10 be expected that foreigners will send
money here in large amounts with every period
of rcviving prosperity. This country can pay
moro for the use of money than any other OF
equal ability as respects government and in
stitutions, and of such maturity Of development
as to insure steady and rapid growth. AS more
money comes. more will be rcinvcsted here
by capitalists who get good returns and want
moro of the same sort. Their fortune will at
tract others. Thus there is no limit to the
supply of foreign capital which may be OK
pcctcd for the development Of American re-
sources, provided two conditions are Observed
This country must treat creditors Of all sorts
honorably. Doubt as to the maintenance OF
public faith, doubt as to the stability OF the
currency, doubt as 10 the payment OF gold
where gold was understood by both parties,
would he fatal This country would get as
little foreign capital as Mexico, if the dollar
of this country should come to be worth no
more than the Mexican dollar. The other con-
dition is that this country must continue to
defend its own industries Foreigners preach
to us the blessings of free trade. but they take
care TO invest their money where industries
are not exposed to be crushed by European
competition. Their acts speak louder than
| their words